Switzerland drops money-laundering probe into former Spanish king

The Swiss judiciary has largely dropped criminal proceedings against former Spanish King Juan Carlos, who was suspected of money-laundering together with other suspects, the Public Affairs Ministry in the canton of Geneva said on Monday.

There was insufficient evidence to support claims that Juan Carlos had secretly received commission for contracts with Spanish companies through accounts held by front men at Swiss banks, the ministry said in a statement.

"It was suspected that the commission was related to Spanish companies concluding a contract for the construction of the high-speed train between Medina and Mecca," the statement added.

Juan Carlos received 100 million dollars from the Saudi Finance Ministry in 2008 through an endowment account at the Mirabaud and Cie bank. He had been the beneficial owner of that account.

There were also said to be other insufficiently documented payments made to him or his confidants.

"However, since the investigation could not establish a sufficient link between the amount received from Saudi Arabia and the conclusion of contracts for the construction of the high-speed train, the prosecutor's office closed the case due to lack of sufficient charges," the ministry said.

Bank fined

The bank was fined 50,000 francs (54,200 dollars) for violating reporting requirements because, according to the statement, it had sufficient evidence to report unusual financial flows.

Juan Carlos is facing three legal investigations in Spain. The allegations against him include money-laundering and tax fraud, suspected bribes paid during the construction of the high-speed train line, allegedly undeclared donations and holding secret bank accounts abroad.

To avert criminal proceedings for tax fraud, Juan Carlos initially paid around 678,000 euros (765,100 dollars) in back taxes at the end of 2020, followed by another payment of almost 4.4 million euros in February this year, as confirmed by his lawyer.

It remains unclear whether charges will still be brought in Spain against the 83-year-old former king, who has been living abroad since August 2020.